TAX - Ch- 1 & 2

Said has made a number of investments during the tax year.  Write which of the following investments will generate taxable income and which will generate exempt income.

1.      £400 in shares in the company he works for

2.      £1,000 in an Individual Savings Account

3.      £800 in a NS&I investment account

4.      £500 purchasing a NS&I certificate    

• Taxable Income – 1, 2 & Exempt Income – 3, 4

• Taxable Income – 1 & Exempt Income – 2, 3, 4

• Taxable Income – 1, 3 & Exempt Income – 2, 4

• Taxable Income – 3, 4 & Exempt Income – 1, 2

2 Martina is self‐employed, and for the year ended 5 April 2024 her trading profit was £111,900. During the tax year 2023/24, Martina made a gift aid donation of £800 (gross) to a national charity. What amount of personal allowance will Martina be entitled to for the tax year 2023/24?

• £12,570

• £7,020

• £5,950

• £7120

Fiona is a sole trader. During the tax year 2023/24 she had taxable trading income of £106,800 and received dividend income of £1,500. Fiona made a gift aid donation of £2,000 (gross) during the tax year. What amount of personal allowance is Fiona entitled to for the tax year 2023/24?

• 12500

• 9350

• 9420

• 10350

Fiona is a sole trader. During the tax year 2023/24 she had taxable trading income of £106,800 and received dividend income of £1,500. Fiona made a gift aid donation of £2,000 (gross) during the tax year. What amount of income tax payable for the tax year 2023/24? (with normal rounding)

• 31181

• 31285

• 35641

• 42135

Samuel is planning to leave the UK to live overseas, having always previously been resident in the UK. He will not automatically be treated as either resident in the UK or not resident in the UK. Samuel has several ties with the UK and will need to visit the UK for 60 days each tax year. However, he wants to be not resident after he leaves the UK. For the first two tax years after leaving the UK, what is the maximum number of ties which Samuel could keep with the UK without being treated as resident in the UK?

• One

• Four

• Two

• Three

Which of the following will NOT cause Harper to be treated as automatically UK resident for the tax year 2023/24?

• Harper spending 192 days in the UK during the tax year 2023/24

• Harper renting a house in the UK to live in and then occupying it (as her only home) throughout the tax year 2023/24

• Harper accepting a 15‐month contract for a full-time job in the UK on 6 April 2013

• Harper’s husband living in the UK throughout the tax year 2023/24 and Harper staying with him when she visits the UK

7 David received the following income for the tax year 2023-24:

Property income - £21,150

Interest from UK Government securities (gilts) - £2,400

Dividends - £1,250

What is David’s total income tax liability for the tax year 2023/24? (with normal rounding)

• 2018

• 2019

• 2020

• 2010

In the tax year 2023/24 Claudio has taxable income (after deduction of his personal allowance) consisting of £3,000 of non-savings income and £12,500 of savings income. What is Claudio's income tax liability for the tax year 2023/24? (with normal rounding)

• 2500

• 2600

• 2700

• 2000

In the tax year 2022/23 Susie receives employment income of €170,000. She made a gross gift aid donation of €10,000 in January 2023. What is Susie's income tax liability for the tax year 2022/23? (with normal rounding)

• 60203

• 60204

• 60350

• 60025

10 For the tax year 2023–24, May has a trading profit of £129,000. During the year, May’s made a net gift aid donation of £9,600. Calculate May’s income tax liability. (with normal rounding)

• 40032

• 40320

• 40402

• 45000